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Rothschild & Co | Annual Report 2017
I Highlights of the financial period
Net income for the nine-month period
It was decided by decision of the Shareholders of the Company on 28 September 2017 to change the opening and closing dates of the financial year,
so that the closing date is 31 December.
For this financial period, the term is nine months from 01/04/2017 to 31/12/2017 compared to the previous financial year of 12 months from
01/04/2016 to 31/03/2017.
Given that the company operates as a holding company and its revenue are seasonal, it has been considered that it is not relevant to present the main
income statement aggregates of its statutory financial statements restated over a 12-month period. Figures restated over a 12-month period are shown
in the consolidated financial statements of the Rothschild & Co group for the nine-month period ended 31 December 2017.
Rothschild & Co (R&Co) ended the 2017 nine-month period with net income of €121.8 million, compared with €60.7 million for the prior year. R&Co’s
earnings therefore have doubled between the two periods.
For the nine-month period ended 31 December 2017, the Company received dividends of €122.3 million from its French subsidiaries (Paris Orléans
Holding Bancaire SAS (POHB) €78.2 million; K Développement €44.0 million), versus €78.2 million for the previous 12-month period.
II Subsequent events
No significant adjusting events have occurred after the 31 December 2017 closing date.
III Accounting principles and valuation methods
To abide by the going concern, conservatism and reliability principles, and to ensure consistency of accounting methods from one reporting period to
the next, the financial statements have been prepared in accordance with the provisions of French law and with French generally accepted accounting
principles.
The financial statements have been approved in accordance with Financial Regulation 2014-03 modified by regulations 2015-06 and 2016-07 from
the French Accounting Standards Authority (
Autorité des normes comptables
).
To provide relevant reporting on the Company’s business, the income statement is presented in accordance with the so-called “TIAP” model as
recommended by the French Accounting Standards Authority for financial companies.
Income transactions are split in two: firstly, operating income transactions, followed by other income transactions (primarily financial transactions).
Current income corresponds to “income from ordinary activities”, i.e. all activities in which the company engages in the normal course of its business,
and any related activities that it carries out on an add-on basis or as an extension of its ordinary activities.
Operating profit does, however, include non-recurring income and expenses from events which are clearly separate from the Company’s ordinary activities
and which are not, therefore, deemed to occur on a frequent or regular basis.
Capital transactions include transactions concerning holdings classified as non-current assets.
The main accounting policies applied are as follows:
Intangible assets and property, plant and equipment are valued at their acquisition cost and amortised and depreciated in the following manner:
Estimated
useful life
Method
Start-up costs
3 years
straight-line
Software
3 years
straight-line
Buildings
20 to 30 years
straight-line
Plant and general improvements
8 to 10 years
straight-line
Vehicles
5 years
straight-line
Office equipment
3 years reducing-balance
Office furniture
10 years
straight-line
Non-current financial assets are valued at their acquisition cost. The values of holdings denominated in foreign currencies are translated into euro at the
exchange rate on the transaction date. All loans and receivables denominated in foreign currencies classified among non-current financial assets are
translated at the closing rate for the financial period.
Notes to the Company financial statements